
THE QUESTIONS AND ANSWERS OF THE FREQUENTLY ASKED
QUESTIONS BY OUR CUSTOMERS ABOUT THE BUSINESS IN
CHINA:
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Buy directly from
the factories in China, and have your own brand on
the product and on the package
When you buy directly from factories in China you
can have whatever brand you want to be printed on
the products that you buy as well as its package. So
you can create your own brand very easily in this
way.
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Many manufacturers
and traders from USA and Europe come to China and
have their OEM production made in China with a
good inspection. So after getting their own
branded products they can sell in many other
countries where they have sales channels, with
very good profits. Why don't you do the same?
Sure
you can do.. The only thing you need here is a well
structured quality control and inspection by your
quality control and inspection agent in China, since
otherwise you can have a big headache and problems
with the goods, as this is the normal case in China.
However if you have a good sourcing management
agent, then they will do all the controls and
quality inspections for you so that you will be able
to sleep well while your products are being produced
in China.
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When I ask for the
same product from a factory that is already
producing OEM products for an international brand
company, they can not provide the same quality.
Why?
The main problem in China is the lack of the quality
vision and hence the lack of quality control system.
Even of they say that they have, it is usually not
working well, since what the Chinese and the Western
understand from quality is different. Due to
this main problems the factories cannot keep their
product quality. One time they produce in very good
quality, but nobody can guarantee that they will
keep this quality for the second or fifty second
shipment. Even in very big factories we are usually
confronted with the same kinds of quality problems.
Here is the key point: If you work with a Sourcing
Management Agent, they will work for your company to
control the quality of your goods produced and will
have a strict inspection of the goods before the
factory can ship them. In this case you will
minimize the quality risks from the factory.
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I went to trade
fairs in China but I couldn't decide to place any
order. Both I am confused and I could't trust
them. What should I do?
If
you want to minimize you risk, there are 2 ways.
First way is you will move to China and start living
here yourself, go to the factories one by one and
see their productions there. You check their
production while your order is being produced in the
factory. Also you go there after the production
finishes to do the inspection of the finished goods.
Second
way is, like all the big branded companies you will
work with a trustable, reliable Sourcing Management
Agent company.
No,
they are not.
However as most of the companies here had to
learn business just in a short time and could not
adapted to the business principles of the West,
there are some differences. The main problem is
their quality understanding. Sometimes they can
ignore some defects or irregularities on the prducts
which are not exactly matching with the required
specifications of your products that you ordered.
However the small irregularities that they can
ignore, can have a vital importance for your market
and can get you big trouble in your market. So, that
is why working with Sourcing Management Agent
companies are very important to work with, so as to
sleep well at night and not to risk your money and
market.
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Any product
can be produced in China?
Yes,
now almost every product can be produced here.
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My goods from
China arrived, but there is a problem with the
products. What will happen now?
If
you have a serious Sourcing Management Agent, then
this problem can be solved easier. The main task of
your Sourcing Management Agent company is to resolve
any problems that will arise regarding your order,
and function as a bridge between you and the factory
to work for your interests. If you don't work with
such a company, then the best solution is go to
China and try to solve the problem there as to get
the factory replace the defected products.
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Is it possible to
buy products from China and pay later?
Yes.
If you can open a forward L/C (letter of credit)
from your own bank to the factory you can buy like
this. For example if you open a L/C 180 days,
that means you will pay after 180 days. Sometimes
the factories don't accept this payment so in this
case we have an export company (one of the biggest
half-state-owned Holding companies in China) which
accepts this term, so we will do the transaction
through this company, which means you can pay after
180 days for all the products that you buy from
China.
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Is the products
from China of poor quality?
It ispossible to find all kinds of products with
different qualities in China. There are many worst
quality products but also there are many best
quality products. In anyway, now all the world is
going there and have their products made there. So
if you can control the quality well, then you can
get whatever quality you want, according to your
market demands. That's why many American and
European big companies are already buying almost all
of their products from there.
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How can I find
the best priced product in China with the quality
that i want?
The
best way is sending the sample and/or the technical
specifications of the product that you want to buy,
to all the related factories in China so that they
will give their quotations to you one by one. If you
have difficulty in contacting all those factories
than you should work with a professional Sourcing
Management Agent company, who will understand your
needs very well in China.
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How other
European and American companies are buying from China?
How they succeed in sustainable quality if the
products made in China?
Most
of the professional European and American companies
are working with a professional Sourcing Management
Agent company in China, when they are importing
goods from China. Even in cooeparetin with Sourcing
Management Agent companies they send their
own staff to there and make double check with the
products before they are shipped. So in this way,
they can well keep their quality.
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I am buying from
China but there are problems with the
sustainability of the quality of my products, made
in China. What should I do?
There are two ways. One way is to go to China and
stay there during the production period for every
order and inpsect your products yourself. The second
way is to work with a professional Sourcing
Management Agent company so that you minimize your
risks and sustain the quality of the products that
you buy from China
.
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When I start
importing from China, do I need to go to China
every time?
If
you have a team in China who are working for you,
then you don't need to go there every time.
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Which city is
best to buy products in China?
There are different cities in China, where some
specific products are mostly produced
and those specific products are better. Those cities
can be more than one for the same product. For
example in some cities some specific products are
cheaper but accordingly the quality is also not very
good. Yet, the same product can be found in another
city with a little higher prices but have better
quality and wide range of product models.
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How can I be sure
that I am buying a specific product for the best
price?
?
If
you one by one contact all the factories that are
producing the product that you want and see their
samples, you can choose the best factory with the
best price.
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Chinese people
speak English?
Only
the people in the factories that are responsible for
the export speak English. Yet, the number of Chinese
people that has fluency in English and completely
understand you is really few. Due to the culture of
the Chinese, they seem to understand you as they
reply positively, however they in fact don't get
your point. Although you are happy that they
understand you, after some time you see that they
indeed didn't understand you as the result is
something else from what you told them to do. This
is the general situation on China. So when
communicating with them, it is better that you are
together with the right people who has the enough
knowledge of their culture and their nature. If you
go to China one time, you will for sure understand
what we mean.
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We went to China
and placed orders. We agreed on every points when
we are placing the order. However the product that
we received is different from what we ordered. How
this can happen? How can we solve this problem?
This
is the most common problem we meet in China. The
main reason for this
is that most of the Chinese factories, no matter how
big they are, don't have a very well working Quality
Control System. And most of the time the Chinese
workers are very stubborn to understand what you
mean as they continue in their own way. To prevent
this happens again, the best way is to work with a
professional Sourcing Management Agent company and
let them do the quality control and inspection of
the goods before, during and after the production of
your goods that you order to the factory. The
business in China will go smoothly when you are
working with such a company.
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I am buying
different products from different factories in
China. Can I make the the import of all different
products from different factories through one
company?
Yes,
you can. Even if you buy from different factories
you can do your import from one same company. We
also give that service to our customers.
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What is the
benefit of doing all my imports through one
export company?
First benefit is you will not have to pay
commissions to different banks of different
factories, Second, as one export company will serve
you for all your imports, that company will sign and
agreement with all factories that you buy products.
When the parties of the agreement are both Chinese
then it is easier for you to go after your rights in
Chinese courts. Otherwise it is very difficult to
apply the judiciary system.
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Most of the
exhibitors in the trade fairs are trading
companies. Why? How can I reach direct factories
in China?
Mostly the Chinese factories work with export
companies for their exports. The main two reasons
for that are first tax concerns and second the
factories prefer to concentrate on only production.
Another reason is that according the procedure, only
the companies that have the export license can be
exhibitors in trade fairs. And as not all the
factories have export license, you mostly see the
trading companies in the trade fairs.
If
you want to reach to direct factories, you can work
with a Sourcing Management Agent company and they
can help you reach to the direct factories in China
which give you best prices for your specific product
that you want to import from China.
Please send us an
email about the business you want to do from China
:
kingsin@kingsin.com
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